Welcome to business funding! Here's your step-by-step guide:
Step 1: Assess Your Situation
- ●Check your personal credit score (Credit Karma, etc.)
- ●Calculate your monthly revenue
- ●Note how long you've been in business
- ●Identify your specific funding need
Step 2: Understand Your Options Based on your profile:
- ●Under 6 months in business → Limited to some MCAs, personal credit
- ●6-12 months → MCA, some equipment financing, working capital
- ●12+ months → Most products available
- ●24+ months → All products including SBA
Step 3: Prepare Documents Gather these before applying:
- ●3-6 months business bank statements
- ●Government ID
- ●Proof of business ownership
- ●Voided business check
Step 4: Start Conservatively For first-timers, consider:
- ●Business credit card (builds credit)
- ●Small working capital loan (proves payment ability)
- ●Equipment financing (if needed—collateral helps)
Step 5: Avoid Common Mistakes
- ●Don't take more than you need
- ●Understand total cost, not just payment
- ●Read terms before signing
- ●Don't apply everywhere at once
Building Your Credit History: Your first loan is a stepping stone. Pay perfectly, and better options open up in 6-12 months.